Market Analysis Worth the Hype?
If market investing were easy or straightforward, everyone would be making money at it. But there is a dizzying amount of factors involved, and some of those factors actually affect how many other factors are involved, and to what extent those other factors are actually factors. See what I mean?
Take analysts, for example. It is their sole job to examine market trends and provide stock market investing tips for buyers and sellers. But analysts have an unsettling tendency to remain positive during a decline in prices, and even stick to their optimism after the stock has clearly tanked. Given the often close ties with the companies these analysts recommend, it may not be so surprising a trend. Tobias Levkovich, an equity strategist for Citigroup, dubs this “the lemming factor”, since it’s much harder to get fired for a wrong analysis if everyone else was wrong too.
So if we can’t rely on unbiased and honest analysis from the analysts, who can we rely on?
More and more investors are taking control of their own portfolio and learning the skills it takes to spot the money-making (or money-saving) trends before it’s too late. While this can be a complicated endeavor, the potential benefits outweigh the initial difficulties. Having a more solid understanding of the market, its tendencies, and its quirks and idiosyncrasies means that you’ll never have to rely on second-hand information again.
A modified approach would be to go to your portfolio manager and ask them how they make their decisions. If they tell you they get all their market investment tips from the analysts, it might be time to shop around for a new investment company. But if they say they gather all the information they can before making a decision or a recommendation, regardless of where that information comes from, and if they’re willing to buck trends when they see strong reason to, then your money is probably in pretty good hands. Visit here for more: Option trading system
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